Minnesota lawmakers are advancing a bipartisan bill for a statewide ban on cryptocurrency kiosks, which number about 350 in gas stations and retailers, as scams persist despite 2024 regulations. Nearly 20 other states have adopted measures, but advocates call for prohibition. Introduced last month by Rep. Erin Koegel, the proposal faces another legislative hearing this week.
The bill builds on 2024 regulations amid a national effort to curb fraud linked to these machines. Scammers exploit kiosks with urgent threats, such as 'Your grandson was in a car accident' or fake utility shutoffs, tricking victims—often elderly—into inserting cash that transfers irretrievably to scammers' overseas wallets.
Thomas Elness, advocacy manager for AARP Minnesota, highlighted a St. Paul grandfather who lost nearly $9,000. AARP supports the ban as a consumer safeguard, not opposition to cryptocurrency.
Sartell Police Chief Brandon Silgjord described challenges after a kiosk appeared in his city: "We do want to try, and usually it's all done in vain because we can't recover the funds in any way or even identify a reasonable suspect." FBI data shows over $333 million in nationwide losses from kiosk scams last year.
While a major kiosk operator opposes the measure, arguing it won't eliminate scams, the bill has bipartisan backing. Some legislators seek more industry input on prevention. Rep. Erin Koegel introduced the bill in late February during a House committee session, with another hearing anticipated this week.